There are 2 types of taxes owed by an estate: one tax is applied to the transference of assets from the deceased person to their inheritors (the estate tax), while the other is applied to income generated by the deceased person’s estate (the income tax).
When someone passes away, their belongings become property of their estate. Any money that is produced by those assets also belong to the estate and might require you to file an income tax return for the estate.
Some assets that would create income for the deceased person’s estate include bonds, stocks, mutual funds, and savings. If the estate makes more than $600.00 in gross income for the year, IRS Form 1041 will need to be filed.
Before filing IRS Form 1041, you must get a Tax Identification Number for the estate. An estate’s Tax Identification Number is called an Employer Identification Number (EIN), and comes in the format 12-345678X.
You can get your IRS EIN online using our easy online form. All you need to do is follow these three steps.
Choose “Estate of Deceased Individual.”
This is where you enter your personal information, business information, and additional information.
Once you have submitted your form, you should receive your EIN the same day. If you are submitting this form after 6pm PST, you may receive your EIN the next business day.
To check your EIN status, just enter your order number or e-mail address under Order Status on our website.